See also Practice Direction
69
Part
69
COURT'S POWER TO APPOINT A RECEIVER
|
|
Scope of this Part
|
|
69.1 |
|
| | (1)
|
This Part contains provisions about the court's power
to appoint a receiver.
|
|
| | (2)
|
In this Part ‘receiver’ includes a
manager.
|
|
|
|
Court's power to appoint receiver
|
|
69.2 |
|
| | (1)
|
The court may appoint a receiver –
|
| | (a)
|
before proceedings have started;
|
|
| | (b)
|
in existing proceedings; or
|
|
| | (c)
|
on or after judgment.
|
|
|
| | (2)
|
A receiver must be an individual.
|
|
| | (3)
|
The court may at any time –
|
| | (a)
|
terminate the appointment of a receiver; and
|
|
| | (b)
|
appoint another receiver in his place.
|
(The practice direction describes the powers for the
court to appoint a receiver.)
|
|
|
|
How to apply for the appointment of a receiver
|
|
69.3 |
An application for the appointment of a receiver
–
|
| | (a)
|
may be made without notice ; and
|
|
| | (b)
|
must be supported by written evidence.
|
|
|
|
|
Service of order appointing receiver
|
|
69.4 |
An order appointing a receiver must be served by the
party who applied for it on –
|
| | (a)
|
the person appointed as receiver;
|
|
| | (b)
|
unless the court orders otherwise, every other
party to the proceedings; and
|
|
| | (c)
|
such other persons as the court may
direct.
|
|
|
|
|
Security
|
|
69.5 |
|
| | (1)
|
The court may direct that before a receiver begins to
act or within a specified time he must either –
|
| | (a)
|
give such security as the court may determine;
or
|
|
| | (b)
|
file and serve on all parties to the proceedings
evidence that he already has in force sufficient security,
|
to cover his liability for his acts and omissions
as a receiver.
|
|
|
| | (2)
|
The court may terminate the appointment of the receiver
if he fails to –
|
| | (a)
|
give the security; or
|
|
| | (b)
|
satisfy the court as to the security he has in
force,
|
|
|
PD 4Q" name="IDA
PD 4Q">
|
|
Receiver's application for directions
|
|
69.6 |
|
| | (1)
|
The receiver may apply to the court at any time for
directions to assist him in carrying out his function as a receiver.
|
|
| | (2)
|
The court, when it gives directions, may also direct
the receiver to serve on any person –
|
| | (b)
|
the application for directions.
|
(The practice direction makes provision for the form of
applications by, and directions to, a receiver.)
|
|
|
|
Receiver's remuneration
|
|
69.7 |
|
| | (1)
|
A receiver may only charge for his services if the
court –
|
| | (b)
|
specifies the basis on which the receiver is to
be remunerated.
|
|
|
| | (2)
|
The court may specify –
|
| | (a)
|
who is to be responsible for paying the receiver;
and
|
|
| | (b)
|
the fund or property from which the receiver is
to recover his remuneration.
|
|
|
| | (3)
|
If the court directs that the amount of a receiver's
remuneration is to be determined by the court –
|
| | (a)
|
the receiver may not recover any remuneration for
his services without a determination by the court; and
|
|
| | (b)
|
the receiver or any party may apply at any time
for such a determination to take place.
|
|
|
| | (4)
|
Unless the court orders otherwise, in determining the
remuneration of a receiver the court shall award such sum as is reasonable and
proportionate in all the circumstances and which takes into account
–
|
| | (a)
|
the time properly given by him and his staff to
the receivership;
|
|
| | (b)
|
the complexity of the receivership;
|
|
| | (c)
|
any responsibility of an exceptional kind or
degree which falls on the receiver in consequence of the receivership;
|
|
| | (d)
|
the effectiveness with which the receiver appears
to be carrying out, or to have carried out, his duties; and
|
|
| | (e)
|
the value and nature of the subject matter of the
receivership.
|
|
|
| | (5)
|
The court may refer the determination of a receiver's
remuneration to a costs judge.
|
|
|
|
Accounts
|
|
69.8 |
|
| | (1)
|
The court may order a receiver to prepare and serve
accounts.
(The practice direction contains provisions about
directions for the preparation and service of accounts.)
|
|
| | (2)
|
A party served with such accounts may apply for an
order permitting him to inspect any document in the possession of the receiver
relevant to those accounts.
|
|
| | (3)
|
Any party may, within 14 days of being served with the
accounts, serve notice on the receiver
–
|
| | (a)
|
specifying any item in the accounts to which he
objects;
|
|
| | (b)
|
giving the reason for such objection; and
|
|
| | (c)
|
requiring the receiver, within 14 days of receipt
of the notice, either –
|
| | (i)
|
to notify all the parties who were served
with the accounts that he accepts the objection; or
|
|
| | (ii)
|
if he does not accept the objection, to
apply for an examination of the accounts in relation to the contested item.
|
|
|
|
| | (4)
|
When the receiver applies for the examination of the
accounts he must at the same time file –
|
| | (b)
|
a copy of the notice served on him under this
rule.
|
|
|
| | (5)
|
If the receiver fails to comply with paragraph (3)(c)
of this rule, any party may apply to the court for an examination of the
accounts in relation to the contested item.
|
|
| | (6)
|
At the conclusion of its examination of the accounts
the court will certify the result.
(The practice directionpdp-40supplementing Part 40 provides
for inquiries into accounts.)
|
|
|
|
Non-compliance by receiver
|
|
69.9 |
|
| | (1)
|
If a receiver fails to comply with any rule, practice
direction or direction of the court the court may order him to attend a hearing
to explain his non-compliance.
|
|
| | (2)
|
At the hearing the court may make any order it
considers appropriate, including –
|
| | (a)
|
terminating the appointment of the
receiver;
|
|
| | (b)
|
reducing the receiver's remuneration or
disallowing it altogether; and
|
|
| | (c)
|
ordering the receiver to pay the costs of any
party.
|
|
|
| | (3)
|
Where –
|
| | (a)
|
the court has ordered a receiver to pay a sum of
money into court; and
|
|
| | (b)
|
the receiver has failed to do so,
|
the court may order him to pay interest on that
sum for the time he is in default at such rate as it considers
appropriate.
|
|
|
|
|
Application for discharge of receiver
|
|
69.10 |
|
| | (1)
|
A receiver or any party may apply for the receiver to
be discharged on completion of his duties.
|
|
| | (2)
|
The application notice must be served
on the persons who were required under rule 69.4 to be served with the order
appointing the receiver.
|
|
| Existing text of Rule 69.10 renumbered as (1) and (2) inserted w/e from 30 June 2004. |
|
|
Order discharging or terminating appointment of
receiver
|
|
69.11 |
|
| | (1)
|
An order discharging or terminating the appointment of
a receiver may –
|
| | (a)
|
require him to pay into court any money held by
him; or
|
|
| | (b)
|
specify the person to whom he must pay any money
or transfer any assets still in his possession; and
|
|
| | (c)
|
make provision for the discharge or cancellation
of any guarantee given by the receiver as security.
|
|
|
| | (2)
|
The order must be served on the persons who were
required under rule 69.4 to be served with the order appointing the
receiver.
|
|